XFN Xfone Common Stock

Acquisition Expected To Contribute $700,000 in Annual Revenue JACKSON, Miss., Feb. 1 /PRNewswire-FirstCall/ -- XFONE USA, formerly eXpeTel Communications and now a wholly-owned subsidiary of XFONE, Inc. (AMEX:XFN), an international diversified communications services company, today announced that it has acquired the assets of Canufly.net, an Internet Service Provider based in Vicksburg, Mississippi. Based on its historical financial performance, Canufly.net is expected to contribute approximately $700,000 in annual revenue to XFONE and be accretive to the Company's 2006 earnings. Details of this transaction may be found in the related Form 8-K filed with the U.S. Securities and Exchange Commission. Canufly.net provides residential and business customers with high-speed Internet services and utilizes the facilities-based network of XFONE USA, as an alternative to BellSouth, to provide Internet connectivity to their customers. Canufly.net also provides Internet services through wireless applications. Michael Nassour, President of Canufly.net, stated, "Considering that Canufly.net has enjoyed an excellent working relationship with XFONE USA while they served as our primary underlying service provider, we are confident that our valued customers will reap a number of benefits by becoming XFONE USA customers, including access to greatly enhanced and expanded service offerings." Wade Spooner, President and CEO of XFONE USA, commented, "This acquisition represents another strategic step forward in XFONE USA's strategy to capture meaningful share of the communications market throughout Mississippi. We are particularly excited about transitioning Canufly's customer base onto the XFONE USA platform and gaining the opportunity to offer them XFONE USA's fully bundled voice and data services, or the option to select from our broad menu of telephony and Internet services." About XFONE USA, Inc. Headquartered in Jackson, Mississippi, XFONE USA is a fully integrated communications company providing residential and business customers with high quality local, long distance and data/Internet solutions throughout the Southeastern United States. Combined with telephony services, XFONE USA also provides CATV and high speed Internet services to planned communities and multi-dwelling apartment communities, utilizing integrated multi-media offerings - combining digital voice, data and video services over broadband technologies - all on one single itemized bill. About XFONE, Inc. A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephone services; prepaid and postpaid calling cards; cellular services; VoIP services; reselling opportunities; and email and fax broadcasting services. The Company serves customers across Europe, Australia, North America, South America, Asia and Africa. This press release contains forward-looking statements. The words or phrases "should," "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." The Company's financial results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this press release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, and license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission. For More Information, Please Contact: At XFONE, Inc. Alon Mualem, Chief Financial Officer, 011-972-39254446 or via email at Or Elite Financial Communications Group Dodi Handy, 407-585-1080 or via email at At XFONE USA Ted Parsons, Executive Vice President/CMO 601-420-6461 or via email at At Canufly.net Michael Nassour, President 601-630-9888 or via email at First Call Analyst: FCMN Contact: alonm@018.co.il DATASOURCE: XFONE, Inc. CONTACT: Alon Mualem, Chief Financial Officer of XFONE, Inc., 011-972-39254446, or ; or Dodi Handy of Elite Financial Communications Group, +1-407-585-1080, or ; or Ted Parsons, Executive Vice President-CMO of XFONE USA, +1-601-420-6461, or ; or Michael Nassour, President of Canufly.net, +1-601-630-9888, or Web site: http://www.xfone.com/

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